(a) Subject to subsection (b), the effect of perfection and nonperfection of a security interest and the priority of a perfected or unperfected security interest with respect to the rights of a purchaser or creditor, including a lien creditor, shall be governed by chapter 490.
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Terms Used In Hawaii Revised Statutes 200A-24

  • Buyer: means a person that buys or contracts to buy a vessel. See Hawaii Revised Statutes 200A-2
  • Certificate of title: means a record, created by the department under this chapter or by a governmental agency of another jurisdiction under the law of that jurisdiction, that is designated as a certificate of title by the department or agency and is evidence of ownership of a vessel. See Hawaii Revised Statutes 200A-2
  • Department: means the department of land and natural resources. See Hawaii Revised Statutes 200A-2
  • Good faith: means honesty in fact and the observance of reasonable commercial standards of fair dealing. See Hawaii Revised Statutes 200A-2
  • Knowledge: means actual knowledge. See Hawaii Revised Statutes 200A-2
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: means an individual; corporation; business trust; estate; trust; statutory trust; partnership; limited liability company; association; joint venture; public corporation; government or governmental subdivision, agency, or instrumentality; or any other legal or commercial entity. See Hawaii Revised Statutes 200A-2
  • Purchaser: means a person that takes by purchase. See Hawaii Revised Statutes 200A-2
  • Security interest: includes any interest of a consignor in a vessel in a transaction that is subject to article 9 of chapter 490. See Hawaii Revised Statutes 200A-2
  • Vessel: means any watercraft used or capable of being used as a means of transportation on water, except:

    (1) An amphibious vehicle for which a certificate of title is issued pursuant to part III of chapter 286 or a similar statute of another state;
    (2) A watercraft less than eight feet in length and propelled solely by sail, paddle, oar, or an engine of less than ten horsepower;
    (3) A watercraft that operates only on a permanently fixed, manufactured course and the movement of which is restricted to or guided by means of a mechanical device to which the watercraft is attached or by which the watercraft is controlled;
    (4) A stationary floating structure that:
    (A) Does not have and is not designed to have a mode of propulsion of its own;
    (B) Is dependent for utilities upon a continuous utility hookup to a source originating on shore; and
    (C) Has a permanent, continuous hookup to a shoreside sewage system;
    (5) A watercraft owned by the United States; a state; a foreign government; or a political subdivision of the United States, a state, or a foreign government; and
    (6) A watercraft used solely as a lifeboat on another watercraft. See Hawaii Revised Statutes 200A-2
(b) If, while a security interest in a vessel is perfected by any method under this chapter, the department creates a certificate of title that does not indicate that the vessel is subject to the security interest or contain a statement that it may be subject to security interests not indicated on the certificate:

(1) A buyer of the vessel, other than a person in the business of selling or leasing vessels of that kind, takes free of the security interest if the buyer, acting in good faith and without knowledge of the security interest, gives value and receives possession of the vessel; and
(2) The security interest is subordinate to a conflicting security interest in the vessel that is perfected under § 200A-15 after creation of the certificate and without the conflicting secured party’s knowledge of the security interest.
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